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Before claiming Research and Development (R&D) tax relief or expenditure credit, UK companies must submit an additional information form to HMRC for each accounting period.
If an accounting period exceeds 12 months, businesses must submit:
- A form for the first 12 months of the period.
- A second form covering the remaining period beyond 12 months.
For example, a 16-month period requires two tax returns: one for the first 12 months and another for the final 4 months. Each form should only include relevant information for that specific period.
Key Reporting Requirements
Both R&D tax relief and expenditure credit claims must be reported separately and must include:
- Qualifying R&D expenditures
- Detailed project descriptions
Submission Timing
The additional information form must be submitted before or on the due date of the Company Tax Return (CT600). If both are submitted on the same day, ensure the information form is sent first to avoid claim rejection.
Who Can Submit?
The form can be completed by:
- A company representative
- An agent via an agent services account
Required Company Information
To ensure compliance, include the following details when submitting:
- Company’s Unique Taxpayer Reference (UTR) (matching the CT600)
- Employer PAYE reference number and VAT registration number
- For Northern Ireland companies:
- Company Registration Number (CRN)
- Registered business address
- Start and end dates of the accounting period (must align with the CT600)
Northern Ireland Compliance
Businesses in Northern Ireland must disclose:
- Trading sector details
- Any de minimis state aid received in the last three years
Claiming Enhanced R&D Support
If eligible for R&D-intensive enhanced support, businesses must accurately declare de minimis aid received over the last three years.
Detailing R&D Projects
Companies must outline project details as follows:
- One to three projects: Describe all projects.
- Four to ten projects: Describe at least three covering over 50 percent of total R&D spending.
- Separate cost breakdowns for SME tax relief and R&D expenditure credit claims.
Careful preparation and adherence to HMRC’s guidelines are essential for a successful R&D tax relief claim. For assistance, consult HMRC or review official tax guidance.
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